Assignment 01

Course: MKT 201

Section: 01
Semester: Spring2021

Submitted to
Dr. Salma Akter
Assistant Professor
Department of Business Administration

Submitted by
Sohan Hossain
ID: 2019-3-10-028
 A Study on Kentucky Fried Chicken (Bangladesh)

Introduction:

A Study on Kentucky Fried Chicken (KFC)" covering the short history of KFC. Moreover, it
focuses on the primary factors that influence consumers' buying patterns in the fast foods
industry.

It starts with the initial terms of this report, including the objective and methodology of the
study. The company's profile contains short history and information about basic strategy,
technology, ownership, and the foreign and native shareholders of the company.

According to situation analysis, it refers to a short circumstance analysis of the brand "KFC"
strengths and weaknesses from an image perspective followed by the strength and weaknesses of
product/service of KFC After it comes up with the concern factors influencing consumers'
buying pattern. It also focuses on how cultural, social, personal, and psychological factors bias
consumers' purchase decisions, including KFC's buying decision process. Also, it will define the
marketing mix of the KFC. Lastly, the paper comes up with the necessary recommendations and
conclusion. A list of sources of information is also attached at the bottom.

Company Profile OF KFC:

Kentucky Fried Chicken (KFC) stands for high-quality fast food in a popular array of complete
meals to enrich the consumer's everyday life. KFC strives to serve great-tasting, "finger-lickin'
good" chicken meals that enable the whole family to share a fun, emotional, and thoroughly
satisfying eating experience, with the same convenience and affordability of an ordinary Quick
Service Restaurant.

Kentucky Fried Chicken (KFC), one of the most known fast-food chains globally, started in the
early 1930s by Kernel Sanders in the Southern USA as a small franchise operation. Colonel
Sanders has become a well-known personality throughout thousands of KFC restaurants
Worldwide. Quality, service, and cleanliness (QSC) represent the most critical success factors to
KFC's global success.

Food, Fun & Festivity is what KFC is all about. Leading the market since its inception, KFC
provides the ultimate chicken meals for the Chicken Loving Nation. Be it Colonel Sanders's
secret Original Recipe Chicken or the Hot & Spicy version, every bite brings a YUM on the face.
At KFC, we proudly say.
KFC has more than 11,000 restaurants in more than 80 countries and territories around the
World. In 1971, Heublein, Inc. acquired KFC; soon after, conflicts erupted between the Colonel
(working as a public relations and goodwill ambassador) and Heublein management over quality
control issues and restaurant.

PepsiCo acquired KFC in 1986, and it had grown to approximately 6,600 units in 55 countries
and territories. In 1997, PepsiCo spun off its restaurant businesses (Pizza Hut, Taco Bell, and
KFC).

Perfecting its secret recipe of 11 herbs and spices in 1939, KFC has come a long way, with over
10,000 outlets globally; KFC has maintained its title, for the last 60 years, of being "The Chicken
Experts." Kentucky Fried Chicken has become KFC. Does anybody know why? We thought the
real reason was because of the "FRIED" food issue. It's not. The reason why they call it KFC is
that they cannot use the word chicken anymore. Why? KFC does not use natural chickens. They
use genetically manipulated organisms.

These so-called "chickens" are kept alive by tubes inserted into their bodies to pump blood and
nutrients throughout their structure. They have no beaks, no feathers, and no feet. Their bone
structure is dramatically shrunk to get more meat out of them. This is great for KFC because they
do not have to pay so much for their production costs. There is no more plucking of the feathers
or the removal of the beaks and feet.

In Bangladesh totally Chicken buy from Bangladeshi Poultry Firms, and also this Chicken is
100% Halal.

KFC in Bangladesh:

Transcom Foods Limited (TFL) started its journey in 2003 as a franchisee of Pizza Hut, the first
International Chain Restaurant in Bangladesh, and went on to sign the contract to become the
franchisee of Kentucky Fried Chicken (KFC) in the year 2006. Both Pizza Hut and KFC are

subsidiaries of the world’s largest restaurant company Yum! Restaurants International. In seven
years, TFL has opened 4 Pizza Hut and 7 KFC outlets so far throughout the country.1
1
http://www.transcombd.com/transcom-foods-ltd.html
 Banani
Gulshan
13.0%
20.4%

Dhanmondi

25.9% Uttara
16.7%

DOHS

24.1%

Figure: Consumer from different area in Dhaka city

TFL successfully launched the flagship KFC on South Avenue, Gulshan, in September 2006. It
has already won over the Dhaka crowd's heart with its great tasting food, high standard of
hygiene, cleanliness, terrific interior, and, of course, excellent and affordable pricing. Following
its enormous success in Gulshan, the second outlet was opened in Dhanmondi in November
2008, and yet another in Banani in December 2008. Most recently, TFL opened two outlets at
Eskaton in February 2010, and another one is in Paltan.In 2011, TFL opened another two new
outlets in Uttara and the sea beach city of Bangladesh "Cox's bazar."

Strengths and Weaknesses of the brand from an image perspective

Strengths:

 Oldest and Finest: Kentucky Fried Chicken Ltd is the oldest and finest fast foods provider
restaurant by maintaining high goodwill of their brand image.
 Company reputation: Kentucky Fried Chicken Ltd. has earned the status of a reliable fast
foods service provider with the promise of serving quality fast foods to the consumer.
 Brand: the brand KFC reflects the image of high class and status.
 Market Share: KFC currently has the outstanding market share of BD among the fast foods
industry.
 Satisfaction: KFC stays high as a satisfactory brand in most consumers’ mind through high
quality service, innovative ideas and other benefits in affordable expense.
 Promotion effectiveness: Attractive promotional activities that reflects persuasive,
informative and entertaining messages.
 Innovation effectiveness: KFC introduces innovative recipes and menus from time to time
according to customers’ needs.
 Geographical Advantage: One of KFC’s competitive advantages is international brand
image. It considers as significant and prestigious to the customers, which is assured the
business and ensures services to every outlets in Bangladesh.
 Culture: through its name it express that they come to provide quality fast Foods to all over
the country to a specific level of people. Through this Kentucky Fried Chicken secure the
perspective of culture.
 Multinational Organization: KFC Faces numerous advantages of being a Multinational
Organization e.g. economies of scale, government incentives etc.
 Leverage Secondary Brand Association: KFC maintains a useful and efficient leverage
secondary brand association.
 Loyal Customer: KFC creates a strong loyal relationship to the customer, through which they
get a full bundle of customer satisfaction which results them high profit.

Weaknesses:

 KFC has an image of costlier services.

 KFC has specific target customers, cannot reach to any target market because of an image
which belongs to quality, prestige, status.
 It is very expensive and difficult to maintain the image of the brand.
 Whatever the situation or environment, KFC cannot compromise with their quality because
of brand image.
 Because of leveraging secondary brand association, sometimes unwanted events can occur
which may be creates negative image.

Strengths and weakness of the product or services

Strengths:

 Ensure Quality product

 Ideal product offering considering number of people like menu for one person as well as for
several persons.
 Provides world class Service to customer
 Innovative and effective service delivery to the customer
 Does not have any Core competitor In chicken serving
 Large Number of Outlets at prime locations
 Serves variety of items under single menu

Weaknesses:

 Presence of Multinational competitors in the market e.g. McDonalds (specialized not in

chicken serving but in burgers)
 Imported raw material rise their prime cost
 Sometime unable to provide novelty into recipes
 The many sales of KFC lead to a confusing corporate direction.
 Conflicting cultures of KFC and Pepsi Co.

CRM Process

CRM stands for Customer Relationship Management.

 CRM process involves the activities and strategies that companies use to manage their
interaction with current and potential customers. Successfully collecting information about your
customers allows you to understand them more. In turn, you can improve your products and
services based on their demands.

To put it as simply as I can, a CRM is a technology used by companies to strategize and

implement the steps required to better their relationships with their customers. CRM can help
you keep in touch with your consumers, create and track tasks as per their urgency.

CRM process is what puts those strategies at work. All the plans and activities that you have in
mind to better your business, a CRM process would help you execute those.

If I were to list down why CRM software is a must-have in an ambitious businessman's kit, it
would be for three primary reasons: Clarity, Efficiency, and the future.

There are 5 steps in CRM Process

 STEP 1: Understand your business's needs.

 STEP 2: Understand users' needs.

 STEP 3: Understand your future customers' needs.

 STEP 4: Define your vision and pick the right system.

 STEP 5: Make a plan and share it.

Advantage of CRM

Data organized and presented by a CRM platform leads to a better

understanding of customers. This leads to better messaging and

outreach, much of which can be done with automation, which helps

you offer better, more efficient customer service.
Customer Retention

Companies that do a better job of managing customer relations are more likely to see higher
customer retention rates. Studies show that 61% of customers stop buying from a company if
they have a poor customer experience.

Customers know when your company is being genuine and are willing to overlook your mistakes
so long as you demonstrate a dedication to their success. That type of transparency is essential
when reducing churn as well as when you're building a positive customer relationship. It can be
financially beneficial, too, as studies show increasing customer retention rates by just 5% can
increase your profits by 25% to 95%.2

Customer Loyalty

When you have a good history with your customers, it makes it more difficult for your
competitors to lure people away from your brand. Customers loyalty is highly valuable for
businesses as repeat customers are more likely to buy from you than leads that have not yet
converted. Building positive customer relations drives customer loyalty because it creates an
intangible incentive for the customer to return to the same business. think Jar Research even
shows that 55% of consumers will pay more money for a product or service if it’s a guaranteed
good experience. While it may cost more for companies to invest in building positive customer
relations, the payoff in customer loyalty can be instrumental for generating consistent revenue
over time.3

Consumer Satisfaction

2
What is Customer Relations? Everything You Need to Know.
https://blog.hubspot.com/service/customer-relations
3
What is Customer Relations? Everything You Need to Know.
https://blog.hubspot.com/service/customer-relations
Often it can be hard to tell whether your customers are truly happy with your business or not.
91% of unhappy customers who don't complain don't return to a company for another purchase.
Having strong customer relations can act as your insurance policy for preventing these
unidentified customers from churning without warning.
Positive customer relations give companies more insight into their customer's problems because
it creates an open communication channel for relaying customer feedback. This leads to better
individual interactions with customers, which builds up trust over time and influences their
buying decisions. Studies have even found that consumers believe that a good experience with a
company influences their purchase decision than advertising does. So while the commercial of
the cute dog may get a smile or two from your target audience, customer satisfaction results from
your brand creating memorable customer experiences.
Every company should build positive customer relations but hitting your target can be a lot easier
said than done. It takes a complete effort from the entire company to create a long-lasting and
trustworthy customer relationship. In the next section, we break down some of the essential
components needed for fostering positive customer relations at any company.

Factors Influencing Consumer Buying Pattern

Cultural Factor:

Culture, subculture, and social class are particularly important influences on consumer buying
behavior.

Culture:

Culture is the most fundamental determinant of a person’s wants and behavior. However, it is
exposed to these broad cultural values: achievement and success, activity, efficiency and
practicality, progress, material comfort, individualism, freedom, external comfort,
humanitarianism, and youthfulness.
Different cultures have different beliefs: Non -Veg is completely prohibited for some cultures,
whereas chicken is the main food item. Different cultures permit different beliefs and norms.

This reflects the consumption patterns of an individual Culture is a significant factor from a
marketer's view.

As KFC entered Bangladesh, they studied the Bangladesh culture, the norms followed here, as in
Bangladesh pork is not consumed, so they did not include the pork food items in their menu.

Only adopt the Bangladeshi culture but also the Religion as well. They offer Halal foods to the
customers, which is the symbol that they adopted the Muslim Religion.

Subculture:

Each culture consists of smaller subcultures that provide more specific identification and
socialization for their members. Subcultures include nationalities, religions, racial groups, and
geographic regions.

Social class:

Social classes are relatively homogeneous and enduring divisions in a society. They are
hierarchically ordered and their members share similar values, interests, and behavior.

As we discuss earlier that KFC target all the class including the upper class, upper middle and
lower middle class etc. For middle classes they have launched a segment of products at cheaper
rates.

Social class is determined by

 Income
 Occupation
 Education
Balanced level of all three creates awareness of new products and income gives the purchasing
power. So, social class forms an important part of external influence on consumers buying
behavior.

Social Factors

In addition to cultural factors, a consumer’s behavior is influenced by such social factors as

reference groups, family, and social roles and statuses

Reference groups:

Consist of all of the groups that have a direct (face-to-face) or indirect influence on a person’s
attitudes or behavior.

Reference group is the one to which an individual refers. An individual adapts its self to the
group he is in. His consumption patterns, taste, beliefs, behavior etc. Changes according to the
group. Reference groups expose new behaviors and lifestyles, influence attitudes and self-
concept.

As the consumption pattern changes, person who was not fond of KFC may change according to
eating habits of his group members. Even an individual develops a taste of his referent group. So
the group has influenced people.

Membership groups:

Groups that have a direct influence, some primary membership groups are family, friends, ne

Secondary groups:

Such as professional and trade-union groups, tend to be more formal and require less continuous
interaction. highboys, and co-workers, with whom individuals interact fairly continuously and inf
Family
The family is the most important consumer-buying organization in society. The traditions
followed by family are carried forward in children. Family consuming non-vegetarian food
passes this attitude to their children also.

Many respondents told us that they are non-veg because of their family. So people developed
their interest of going to KFC because they are non-vegetarians. Small children go to KFC with
their parent, which reflects that family plays an important role in decision making.

Roles and Statuses:

A person participates in many groups, such as family, clubs, or organizations. The person’s
position in each group can be defined in terms of role and status. A role consists of the activities
that a person is expected to perform. Each role carries a status.

Personal Factors:

Cultural and social factors are just two of the four major factors that influence consumers’

buying behavior. The third factor is personal characteristics, including the buyer’s age, stage in
the life cycle, occupation, economic circumstances, lifestyle, personality, and self-concept.
Figure: Model of Consumer Behavior

Age and Stage in the Life Cycle:

People buy different goods and services over a lifetime.

Occupation and Economic Circumstances:

Occupation also influences a person’s consumption pattern. In addition, product choice is greatly
affected by a consumer’s economic circumstances:

 Spendable income (level, stability, and time pattern),

 Savings and assets (including the percentage that is liquid)
 Debts
 Borrowing power and
 Attitude toward spending versus saving.

Lifestyle:
People from the same subculture, social class, and occupation may actually lead quite different
lifestyles.

 Actualizers
 Fulfilled
 Achievers
 Experiencers
 Believers
 Strivers
 Makers:
 Strugglers

As the internal factors are considered, the change is food pattern are affected by attitudes and
beliefs, but there is an important factor that has constantly changed many life’s of many people.

People are now oriented towards

 Principles
 Status
 Action

These are governed by income, education, intelligence, energy level etc.

Personality and Self-Concept:

Each person has a distinct personality that influences buying behavior. Personality is usually
described in terms of such traits as self-confidence, dominance, autonomy, deference, sociability,
defensiveness, and adaptability.
Self-concept (or self-image) is related to personality. Marketers often try to develop brand
images that match the target market’s self-image. Consumer responses to brand images.

Psychological Factors

Psychological factors are the fourth significant influence on consumer buying behavior (in
addition to cultural, social, and personal factors). In general, a person’s buying choices are
influenced by the psychological factors of motivation, perception, learning, beliefs, and attitudes.

Motivation:

For some, good food is one of the essential needs because people like to experiment with their
taste. Internally motivated people first visit any new food joint.

Perception:

A motivated person is ready to act, yet how that person acts is influenced by their perception of
the situation. Individuals can have different perceptions of the same object because of three
perceptual processes:

 selective attention,
 selective distortion
 selective retention.

The people perceived KFC of international standards and created a mindset that KFC would
serve good quality and taste food.

Beliefs and Attitudes

Through doing and learning, people acquire beliefs and attitudes that, in turn, influence buying
behavior.

ATTITUDE FORMATION:
For years people in Bangladesh have followed the same Traditional food habits. Emphasis has
always been given to the nutrition content of the food. Our values and beliefs have been carried
forward for ages.

ATTITUDE CHANGE:

Now the emphasis is more on the taste than the Traditional nutrient values. With a large no of
entrants in Bangladesh, the consumption pattern of people has completely changed. With the
addition of good quality food in the market, people's mindset is changing, and they accept these
fast-food joints as an excellent place to enjoy their meal.

LEARNING

Behavior that results from Repeated experience Thinking.

Over the years, people have learned about KFC from their advertisements, their print media
promotions. As KFC's tagline "finger-licking good" has made people lean, that is related to good
taste.

DRIVE:

for good food

CUES:

advertising symbols established KFC as one of the food leaders.

RESPONSE:

purchasing products at KFC

REINFORCEMENT:

repeat purchase.
THE CONSUMER BUYING DECISION PROCESS

Marketers have to go beyond the various influences on buyers and develop an in-depth
understanding of how consumers make their buying decisions. Specifically, marketers must
identify who makes the buying decision, the types of buying decisions, and the buying process
stages.

Buying Roles:

Marketers can identify the buyer for many products quickly. We can distinguish five roles that
people might play in a buying decision. An initiator first suggests the idea of buying the product
or service. An influencer is a person whose view or advice influences the decision. A decider
decides whether to buy, what to buy, how to buy, or where to buy. A buyer makes the actual
purchase while a user consumes or uses the product or service.

Buying Behavior:

Marketers also need to be aware that consumer decision-making varies with the type of buying
decision.

 Complex buying behavior

 Dissonance-reducing buyer behavior
 Habitual buying behavior
 Variety-seeking buying behavior

THE PROCESS OF CONSUMER DECISION MAKING

Marketing scholars have developed a “stage model” of the buying decision process. However,
we use this model because it captures the full range of considerations that arise when a consumer
faces a highly involving new purchase.

Stage 1: Problem Recognition

The buying process starts when the buyer recognizes a problem or need.
  The need was hunger and the immediate satisfaction of hunger through fast food.
 Mainly targeted at chicken lovers.
 The traditional eating habits in Bangladesh have changed.
 Youngsters nowadays want a hanging joint with good food.
 Growing fast food market: KFC came up as a ‘Burger king.’

Stage 2: Information Search

An aroused consumer who recognizes a problem will be inclined to search for more
information.
The Internal factors of Information Search by consumers are:
 Recall of advertisements/Print media.
 Some perceived KFC as high price, high quality.

The External factors of Information Search are:

 Friends and Family.
 Public sources, including various product-rating organizations such as Consumer
Reports.

Stage 3: Evaluation of Alternatives

Once the consumer has conducted an information search, how do they process competitive brand
information and make a final judgment? There are several evaluation processes; the most current
models view the process as cognitively oriented, meaning that consumers form judgments
primarily on a conscious and rational basis.

Comparing the food joints-Mc Donald, Wimpey’s, and KFC.

 RATIONAL CHOICE: For burgers or Non-Veg lovers.

 ATTITUDE CHOICE: Some people perceived it as high price, high-quality products at
KFC
  ATTRIBUTE CHOICE THEORY: By knowing the product well, as in the ingredients,
hygiene factors, ambiance, etc.
 AWARENESS SET: Mc Donald’s, KFC, pizza hut, Narula’s, Wimpey’s, Subway.
 EVOKED SET: KFC, Pizza Hut, Mc Donald’s.
 INEPT SET: Narula’s, Subway.
 INERT SET: Wimpey’s

THE PROCESS OF CONSUMER DECISION MAKING

Stage 4: Purchase Decision

In the evaluation stage, the consumer forms preferences among the brands in the choice set and
may also intend to buy the most preferred brand. However, two factors can intervene between
the purchase intention and the purchase decision.

The decision of buying a product at KFC was backed by many factors (as known by consumer
survey)

Social Surroundings: The kind of people around, i.e., including others, present when a purchase
is made.

PHYSICAL SURROUNDINGS: Such as decor, music, and ambiance, cleanliness, etc.

Antecedent states: Which include the consumer’s mood or amount of cash on hand?
Stage 5: Post-purchase Behavior

After purchasing the product, the consumer moves into the final stage of the consumer buying
process, in which he or she will experience some level of satisfaction or dissatisfaction.

Post-purchase Satisfaction:

The buyer’s satisfaction with a purchase is a function of the closeness between the buyer’s
expectations and the product’s perceived performance. If performance falls short of expectations,
the customer is disappointed; if it meets expectations, the customer is satisfied; if it exceeds
expectations, the customer is delighted.

Post-purchase Actions:

The consumer’s satisfaction or dissatisfaction with the product after purchase will influence
subsequent behavior. Satisfied consumers will be more likely to purchase the product again. A
high correlation between satisfaction with the last brand bought and intention to re-buy the
brand. Dissatisfied consumers, on the other hand, may abandon or return the product;

Post-purchase Use and Disposal:

Marketers should also monitor how buyers use and dispose of the product after purchase.

POST PURCHASE BEHAVIOUR

POSITIVE FEEDBACK

 Consumers were satisfied with the taste and quality of the food.
 Some people were even satisfied with the environment and the friendly attitude of people
at cash counters.
NEGATIVE FEEDBACK

 Some consumers found food as bland and oily.

 They found the chicken has been cooked earlier and kept it in a warm environment.
 One of the respondents renamed KFC as BFC (badly fried chicken).
 The Holistic Marketing Concept

The definition of holistic is relating to the idea that things should be studied as a whole and
not just as a sum of their parts. An example of holistic is health care that focuses on the
health of the entire body and mind and not just parts of the body.

The holistic marketing concept is based on the philosophy of holism, which can be
summarized with a single thought of Aristotle: ''The whole is more than the sum of its parts''.
This concept is anything but new in philosophy, and when it comes to marketing, marketers
started using it fairly recently.

Without question, the trends and forces that have defined the new marketing realities in the
first years of the 21st-century lead business firms to embrace a new set of beliefs and
practices. The holistic marketing concept is based on developing, designing, and
implementing marketing programs, processes, and activities that recognize their breadth and
interdependencies. Holistic marketing acknowledges that everything matters in marketing
and that a broad, integrated perspective is often necessary.

Coca-Cola is the best example of Holistic Marketing. They drafted their entire plan of
marketing on one goal – Happiness. They did not just market their product, but they sold
Happiness. Based on that one goal, Coca-Cola wanted to promote Happiness.

The Holistic Marketing Concept consists of 4 major elements

  Relationship Marketing
 Integrated Marketing
 Internal Marketing
 Performance Marketing

Relationship Marketing

Increasingly, a key goal of marketing is to develop deep, enduring relationships with people and
organizations that directly or indirectly affect the success of the firm’s marketing activities.
Relationship marketing aims to build mutually satisfying long-term relationships with key
constituents to earn and retain their business.

Four key constituents for relationship marketing are customers, employees, marketing partners
(channels, suppliers, distributors, dealers, agencies), and members of the financial community
(shareholders, investors, analysts). Marketers must create prosperity among all these constituents
and balance the returns to all key stakeholders. Developing solid relationships with them requires
understanding their capabilities and resources, needs, goals, and desires.

The outcome of relationship marketing is a unique company asset called a marketing network,
consisting of the company and its supporting stakeholders—customers, employees, suppliers,
distributors, retailers, and others—with whom it has built mutually profitable business
relationships. The operating principle is simple, create an effective network of relationships with
key stakeholders, and profits will follow. Thus, more companies choose to own brands rather
than physical assets. They are subcontracting activities to firms that can do them better and more
cheaply while retaining core activities at home.4

Integrated Marketing

Integrated marketing occurs when the marketer devises marketing activities and assembles
marketing programs to create, communicate, and deliver value for consumers such that “the
whole is greater than the sum of its parts.” Two key themes are that \

4
Relationship Marketing | The Goal. https://agoalbook.wordpress.com/2013/03/04/relationship-
marketing/
(1) many different marketing activities can create, communicate, and deliver value, and (2)
marketers should design and implement any one marketing activity with all other activities in
mind. When a hospital buys an MRI machine from General Electric’s Medical Systems division,
it expects sound installation, maintenance, and training services to go with the purchase.

All company communications also must be integrated, so communication options reinforce and
complement each other. A marketer might selectively employ television, radio, print advertising,
public relations, events, and PR and Web site communications, so each contributes to its own
and improves the effectiveness of the others. Each must also deliver a consistent brand message
at every contact.5

Internal Marketing

Internal marketing is an element of holistic marketing, which is hiring, training, and motivating
able employees who want to serve customers well. Savvy marketers recognize that marketing
activities within the company can be as important—or even more important—than those directed
outside the company. It makes no sense to promise excellent service before the company’s staff
is ready to provide it.

Marketing succeeds only when all departments work together to achieve customer goals when
engineering designs the right products, finance furnishes the right amount of funding, purchasing
buys the suitable materials, the production makes the right products in the right time horizon, and
accounting measures profitability in the right ways. However, such interdepartmental harmony
can only merge when senior management communicates a vision of how its marketing
orientation and philosophy serve customers.

Internal marketing requires vertical alignment with senior management and horizontal alignment
with other departments, so everyone understands, appreciates, and supports the marketing effort.6

Performance Marketing
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Holistic marketing acknowledges that everything matters in ....
https://www.coursehero.com/file/p6frnbc/Holistic-marketing-acknowledges-that-everything-matters-
in-marketingand-that-a/
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Holistic marketing acknowledges that everything matters in ....
https://www.coursehero.com/file/p6frnbc/Holistic-marketing-acknowledges-that-everything-matters-
in-marketingand-that-a/
Performance marketing requires understanding the financial and non-financial returns to business
and society from marketing activities and programs. As noted previously, top marketers are
increasingly going beyond sales revenue to examine the marketing scorecard and interpret what
is happening to market share, customer loss rate, customer satisfaction, product quality, and
other measures. They are also considering the legal, ethical, social, and environmental effects of
marketing activities and programs.

Many firms have failed to live up to their legal and ethical responsibilities, and consumers are
demanding more responsible behavior. One research study reported that at least one-third of
consumers worldwide believed that banks, insurance providers, and packaged-food companies
should be subject to stricter regulations7.

MARKETING MIX:

Marketing mix consists of 4P’s. It contains everything a firm can do to influence the
demand for its product. The 4P’s are:

 PRODUCT
 PRICE
 PLACE
 PROMOTION

PRODUCT:

Anything that can be offered to a market to satisfy a want or need.

KFC's specialty is fried chicken served in various forms. KFC's primary product is pressure-fried
pieces of chicken made with the original recipe. The other chicken offering, extra crispy, is made
using a garlic marinade and double dipping the chicken in flour before deep frying in a standard
industrial kitchen-type machine.

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Case Study Marketing | Homework Writing Market. https://tutorsonspot.com/questions/case-study-
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(i) Product Planning:

 Their product is classified as a consumer product as it has no intermediates.

 KFC offers specialty goods.
 The stock turnover of KFC is high.
 The price and quality of the product are always compared.
 Their product includes
 Goods (Burgers, Chicken Meals, etc.)
 Services (cleanliness, quick service, parties, and meetings).

(ii) Product Strategy:

It was launched here as an innovative product. KFC has got one product line, but later they
introduced products in the same line to protect their market share. New product ideas are
generated from:

 Customer services (comments cards)

 Gallops survey (mystery shoppers)

They have a Quality Assurance department that decides the new product innovation. Q.A.
department prepares to screen of new ideas and product's feasibility report. This department does
the technical evaluation (whether it is practical to produce the new product or not). The products
are tested externally by offering trials to customers by giving them free samples. KFC uses
telemarketing, print media, billboards, and most recently televised marketing for promotion.
KFC adds a new product in its present assortment based on

 Their competitors
 Product's adequate demand
 The satisfaction of critical financial criteria
 Its compatibility with environmental standards

(iii) Product Line:

KFC's product line includes all chicken-based products

(iv) Burgers:

 Zinger Burger
 Colonel's Chicken Burger
 Colonel's Fillet Burger
 SUB60
 Zinger Jr.

(v) Chicken:

 One piece
 Two pieces
 Five pieces
 Ten pieces

(vi) Combos:

 Chicken Meals
 Sandwich Meals
 Family Meals

(vii) Desserts & Beverages:

  Fruit Salad
 Regular & Large Drink
 Regular & Large Mineral Water
 Tea
 A scoop of Walls Ice-cream
 Coffee

(viii) Snacks & Side Orders:

 5 & 20 Pieces Nuggets

 Arabian Rice
 5 & 10 Pieces Hot wings
 Dinner Roll
 Regular & Large Fries
 Hot Shots
 Corn on the Cob
 Hot & Crispy Soup
 Cole Slaw

(ix) Product Mix Strategy:

The product mix strategies are about:

(a) Competitors: KFC has a head-on competition with McDonald's, so wherever they place
their products, KFC goes there as well. Locally in Bangladesh, KFC faces a close match with the
local brands like AFC (Al-Baik Fried Chicken), Fried Chicks, Dixy Chicks, etc., which are
producing more or less the same product as KFC.

(b) Attributes: The brand KFC is so strong that it is the attribute itself.

(c) Place and Quantity: KFC products are based on high quality and prices.

(x) Product Mix Expansion:

(a) Line Extension: Through introducing new meal offers.

(b) Alteration of existing products: The quality Assurance department does it. The
department decides which product should be sold and when (seasonal products as rice and soups
offered in winters).

(c) Functional modification: The Q.A. department also decides to introduce new recipes.

(d) Quality modification: KFC has moved to masses rather than the original recipe.

(xi) Contraction: When the new deals or offers are not sold as expected, the Q.A. department
contracts the previous offers and introduces new offers.

(xii) Change in Product Positioning: KFC products were first offered to the upper socio-
economic group. Later, introducing discounted and lower price deals, they are now dealing in
masses. So, KFC has traded down. In doing so, KFC has used the same brand name and same
high-quality product.

(xiii) Product Life Cycle: KFC introduced itself, has grown, and now it is at maturity stage for
the last ten years in Bangladesh.

(xiv) Product, Brand, Packaging, and Labeling:

(a) Brand Name: KFC.

(b) Color: Red, white.

(c) Symbol: Colonel Harland Sander's picture and KFC written with it.

(d) Master Brand: The brand itself is so dominant that it immediately comes to mind.

(xv) KFC Brand:

  KFC's brand identity, the logo features Colonel Harland Sanders, one of the world's best-
recognized icons.
 KFC is a trademarked, registered brand.
 It is distinctive, adaptable to add to the product line.
 It suggests something about the product.
 It is legally protected and registered.

(xvi) Brands Equity: The brand equity is very high as the brand's value to the product affects
the product selling.

(xvii) Brand Strategy: KFC is marketing the entire output under the product's brand.

(xviii) Complimentary branding: Pepsi & Nescafe.

(xix) Packaging Strategy: KFC makes its disposable packaging. If they need promotion,
Pepsi contributes to improving the packaging quality. KFC does family packaging. They use
paper material for packaging to avoid health hazards and environmental pollution.

(xx) Labeling: KFC does brand labeling. Some of its products also have informational labels
such as Halal, Veggie Burgers, and Chicken Meals.

PRICE:

Price is any amount of money that customers have to pay while purchasing the product. More
broadly, price is the sum of all the values that consumers exchange for the benefits of having or
using the product or services.

KFC Pricing Strategy:

In the introduction stage, KFC entered the market using a market-skimming strategy. Their
products were high price and targeted only the upper class. Gradually they trickle down, focusing
on the middle class to penetrate the market. Also, KFC follows one price strategy. Price is
determined according to the rates of the raw materials and policies of the Govt. The political and
legal forces often affect KFC's procedures and eventually result in a change of prices due to
taxes.8

PLACE:

1. Distribution Channel:

KFC has only one channel of distribution, i.e., direct where the goods are transferred to the
consumer directly. KFC has no middlemen.9

2. Distribution of Customer Goods and Services:

 KFC does the distribution of consumer goods directly to the consumer.
 KFC also distributes services to the consumer like parking, sitting, home delivery, etc.
 KFC intends to further develop its mobile network nationwide through more such units
3. Intensity of Distribution:

KFC does intensive distribution on its outlets. (All and everything on every outlet).

4. Vertical Marketing System:

KFC has a corporate vertical marketing system because it is centrally owned by its subsidiary
Yum Brands. KFC is affected by the geographic distribution (they have fewer outlets than its
competitor McDonald's). The unit value of the items is comparatively lower than McDonald's.
KFC has a well-equipped sitting area for the customers and a Chicken play area for the kids.

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9
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PROMOTION:

Promotion is the method used to inform and educate the chosen target audience about the
organization and its products. Using all the resources of promotion:

• Advertising

• Sales Promotion

• Public Relations

• Events and Experiences

• Coupons, Discounts and Bundled packages

• An organization finds most of its meanings and survival through promotion.

At KFC, Promotion is the primary tool to bring all chicken lovers' attention towards its delicious
one-of-a-kind product, the Fried Chicken.
The logo features Colonel Harland Sanders, one of the best logos in the world, has created its
name as a standard in the market. Today the Colonel's Spirit and heritage are reflected in KFC's
brand identity.

KFC, by its advertisements, derives the desire in the customer to come and enjoy healthy food in
their favorite restaurant. They spend 2% of their profits on promotion. They use print media and
most recently doing televised marketing to promote their products. Their advertising media
involve Newspapers, Pamphlets, Billboards, and Television. KFC does both the primary demand
advertising (“Become a Chicken Fanatic”) and the selective demand advertising (e.g., “Zinger
Meal”). In its advertising, it gives informative messages. KFC does institutional advertising to
stimulate demand. When KFC offers new products, then it does product advertising. KFC’s ads
act as counteracts, which means to drive the customer to KFC, i.e., it uses a pull advertising
strategy. KFC has joint sale promotions with different companies like HP, Philips, Value Meals,
Pepsi-Cola. 10

Recommendation:

Some recommendations for the KFC senior executives are as given below:

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  As KFC has a costlier brand, KFC may consider the price to target more consumers in
Bangladesh.
 KFC can launch more outlets not only in Dhaka as well in the other megacities in
Bangladesh.
 KFC can go for more promotional activities to attract more customers in Bangladesh.
 KFC should open the road street wheel-based vehicle van restaurants in Bangladesh.
 If KFC expands its business, it will create more employment opportunities for the local
people in Bangladesh.
 KFC can arrange technical and practical assistance to the people who want to do a job in
this fast-food industry.

CONCLUSION:

KFC is a powerful chain of fast-food restaurants with more than 10,000 restaurants all over the
world. Being in the “Maturity Stage,” it has high opportunities of introducing its new products
and deals. In the future, it will be expanding its chain by introducing more outlets in Bangladesh
and other countries.

Perception:

 Believe in value creation.

 Provide the ultimate choice of quick-service restaurants for consumers.
 Won the hearts of millions of Bangladeshis

Sources:

• Official web site of KFC: www.kfc.com

• Official website of Transcom Food Limited: www.tfl.com

• Text book: Marketing Management (15th Edition) by Philip Kotler

• Information KFC outlet in Dhanmondi ,Dhaka, Bangladesh.